Thursday, May 21, 2009

Nutralite-Brand Analysis

Nutralite Bread Spread was launched by Carnation Analogue-Foods Ltd in 1996.Later in 2006,Zydus Cadila acquired a majority stake in Carnation Analogue-Foods Ltd & decided to relaunch Nutralite.Today the brand commands more than 60% market share in the Margarine category which is currently a 60-crore market in India.

Nutralite,intrinsically,is a very interesting brand. It positions itself as 'Better than Butter'(old) or 'Healthier than Butter'(new).Thus underscoring the point that it is not butter but a healthier substitute to butter & creating a point of difference(pod) for itself.At the very same time it is sold in the market as 'Nutralite Butter' thus highlighting its point of parity(pop) to butter.Inspite of the fact that its pop & pod are quite antithetical to each other,the brand is doing well.This can be primarily due to the following reasons:

Consumer submits to the information asymmetry created by the brand & believes that the 'healthier than butter' aspect is created by the addition of some extraneous ingredients having health benefits.Thus the product is able to capitalize on its 'butter-like' attributes without educating the customers about an entirely new product category of Margarines.

Nutralite as a product offering is catering to the needs of a particular customer segment i.e. people who are prone to cardio vascular diseases primarily in the urban middle class.Thus its 'zero cholestrol' feature is quite appealing to people aged above 40.Though Nutralite is also creating buzz amongst the diet-conscious youth who use Nutralite for cooking purpose(as a substitute to oil).

If Margarine is studied as a separate category in India, it is currently dominated by Nutralite with competition from other brands like Amul Lite & Marie Gold.Margarine is a healthy substitute to butter.Butter which is derived from fats of animal origin contains high amount of cholestrol & saturated fatty acids and low amount of unsaturated fatty acid.In contrast to this,Margarine is derived from fats of vegetable origin & contains more unsaturated fatty acids(which are good for health)& almost no cholestrol.This makes Margarine a definite product for people prone to heart diseases & other lifestyle disorders.

Nutralite as a brand shares a lot of synergy with its holding company Zydus Cadila which has differentiated itself by offering unique health & analogue products.Its other important brands include Sugar free & D'lite.Health products' market in India is bound to grow at a tremendous pace in the future owing to the steady increase in the sedentary lifestyle of Indian populace.Thus making it imperative for people to resort to healthier substitutes of conventional foods.However,the paradox lies in the fact that people still take Analogue foods as Artificial food & prefer the conventional products.The onus therefore rests upon companies to create awareness about the category to help it take-off.